What constitutes grounds for immediate termination of the Cinnaholic franchise agreement related to Anti-Terrorism Laws?
Cinnaholic Franchise · 2025 FDDAnswer from 2025 FDD Document
- (vi) Any misrepresentation under this Section or any violation of the Anti-Terrorism Laws by Franchisee or Franchisee's owners, agents, bankers, employees and affiliates shall constitute grounds for immediate termination of this Agreement and any other agreement Franchisee has entered with Franchisor or an affiliate of Franchisor, in accordance with Section 21.2(xvi) above.
Source: Item 22 — CONTRACTS (FDD pages 61–62)
What This Means (2025 FDD)
According to the 2025 Cinnaholic Franchise Disclosure Document, any misrepresentation or violation of Anti-Terrorism Laws by the franchisee, its owners, agents, bankers, employees, and affiliates constitutes grounds for immediate termination of the franchise agreement. This includes any other agreements the franchisee has with Cinnaholic or its affiliates.
The Anti-Terrorism Laws, as defined in the FDD, encompass a range of regulations, including the Bank Secrecy Act, the Foreign Terrorist Organizations Sanctions Regulations, the Cuban Assets Control Regulations, the USA PATRIOT Act, and all other present and future federal, state, and local laws related to terrorist acts or acts of war. These laws also include any requirements from governmental authorities such as the United States Department of Treasury Office of Foreign Assets Control.
Cinnaholic requires franchisees and their owners to certify that they are not listed in the Annex to Executive Order 13224 and agree not to hire or retain anyone listed in the Annex. Franchisees must also certify they have no knowledge that would result in themselves or anyone associated with them being listed in the Annex. The franchisee is solely responsible for understanding and complying with all Anti-Terrorism Laws, and their indemnification responsibilities extend to these obligations.
This clause highlights the critical importance Cinnaholic places on compliance with anti-terrorism regulations. A prospective franchisee should carefully review Section 42.2 of the franchise agreement and consult with legal counsel to fully understand their obligations and the potential consequences of non-compliance, which could lead to immediate termination of the franchise agreement.